506 W Oceanfront #2 · Newport Beach, CA 92661

$975,000

5 bd · 3.0 ba · 2,294 sqft · SingleFamily · 631 Days on market

Built 2000 Good condition 2,100 sqft lot $425/sqft · 78% below area ↓ 19% since listing

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Why this score? — see what drove the B- grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +21.9/30.0
• Appreciation +10.0/10.0
• ARV discount +7.5/15.0
• DSCR +7.0/10.0
• 1% rule +5.7/10.0
• Rent growth +5.0/5.0
• Schools +4.8/10.0
• Condition / age +4.0/5.0
• Livability +3.8/5.0

Listing remarks MLS

New Co-Ownership Opportunity: New co-ownership opportunity: Own one-eighth of this professionally managed, turnkey home. Just steps from the sand, this Balboa Peninsula home offers spectacular views of the Pacific and Catalina. Enter through the Dutch front door to an open plan living area featuring a fireplace, an inviting dining area and glass doors to the oceanfront patio. The adjoining kitchen has a peninsula with a breakfast bar, granite countertops, a built-in fridge and loads of storage space. The spacious primary suite has a balcony perfect for catching the sun setting over the water, plus a fireplace and an en suite bathroom with dual sinks and a tiled shower. Down the hall are four guest bedrooms, and the home is topped by a bonus room and sun deck. The home comes fully furnished and professionally decorated.

Key facts

• Balcony with view
• Open plan living
• Oceanfront patio

Tags

• OCEANFRONT PATIO
• BALCONY WITH VIEW
• PROFESSIONALLY MANAGED
• OPEN PLAN LIVING

What this means for you Summary

Snapshot

• This is a 5-bed/3.0-bath single-family listed at $975k. Condition is rated good.

Deal economics

• At list price, monthly cash flow is $2k ($18k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($10k rent vs $975k).
• Recommended offer: $858k (12.0% below list) — sets the bar for market timing.
• Cap rate 8.2% vs local median 0.6% in Newport Beach — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

Location & tenants

• Location reads 76/100 on livability (#101 in CA, #3,645 nationally) — a middle-class / working-renter tenant base. Strengths: schools A+, amenities A+, employment A+; Watch: health & safety C-, cost of living F.
• Newport-Mesa Unified (urban): math 46% / reading 58% proficiency, ranked #106 of 517 in CA (top 20%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: Rents rising fast (+13.6%/yr); 52 active listings in the ZIP; 29 comparable units currently listed for rent nearby; rentals lingering (median 44d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 76% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 6,974 units permitted in Orange County in 2024 (3,839 in 5+ unit buildings).
• At $10,479/mo this rent would consume 60% of the median local household income ($209k/yr) (locally 72% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

• In year one you build about $104k of equity ($7k loan paydown + $98k appreciation (10.0% local appreciation)).
• Orange County population projected at +14% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (10.0% appreciation + 8.0% rent growth), your $273k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$168k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• It's been on market 631 days — a 12% lower offer ($858k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Climate carrying-cost: extreme-heat days projected 7→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $858,000 (12.0% below list)

Questions for the listing agent

1. It's been on market 631 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
2. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
3. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
4. Schools are A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
5. What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.
6. What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
7. How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.

Investment metrics

• 1% rule: 1.07% ✓
• Cap rate: 8.19%
• Cash-on-cash: 6.77%
• DSCR: 1.30
• GRM: 7.8

CMA / ARV

• ARV (median comp): $4,375,190
• List price: $975,000
• Delta: -77.72%
• Verdict: UNDERPRICED
• Comps: 20 within 1.0 mi

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
506 W Oceanfront	0.00mi	5/3.0	2,294 (0%)	18mo	$1,071,500	$467	85
314 Anade Ave	0.14mi	4/4.5 (-1)	2,315 (+1%)	6mo	$5,700,000	$2,462	76
310 E Oceanfront	0.20mi	4/3.5 (-1)	2,576 (+12%)	8mo	$8,425,000	$3,271	57
124 Via Quito	0.73mi	4/3.0 (-1)	2,310 (+1%)	6mo	$4,400,000	$1,905	54
205 Garnet Ave	0.56mi	4/4.0 (-1)	2,241 (-2%)	18mo	$4,437,500	$1,980	47
2602 Circle Dr	0.72mi	4/2.5 (-1)	2,400 (+5%)	7mo	$5,475,000	$2,281	45
121 Emerald Ave #3	0.52mi	4/5.0 (-1)	2,380 (+4%)	18mo	$850,000	$357	42
303 Ruby	0.72mi	4/4.5 (-1)	2,478 (+8%)	2mo	$5,900,000	$2,381	40
122 Collins Ave	0.67mi	4/4.0 (-1)	2,551 (+11%)	1mo	$3,270,000	$1,282	40
421 E Edgewater Ave	0.32mi	4/4.0 (-1)	2,614 (+14%)	16mo	$7,155,000	$2,737	39
1340 W Bay Ave	0.74mi	4/2.5 (-1)	2,053 (-10%)	7mo	$7,675,000	$3,738	35
636 Via Lido Soud	0.71mi	4/2.5 (-1)	2,622 (+14%)	12mo	$4,575,000	$1,745	26

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

10.0% appreciation · 8.0% rent growth · sell at horizon

5-year hold

• IRR: 31.3%
• Equity multiple: 3.51×
• Total profit: $684,652
• Equity at exit: $878,357

10-year hold

• IRR: 28.7%
• Equity multiple: 8.61×
• Total profit: $2,076,546
• Equity at exit: $1,894,211

Cash invested: $273,000 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 18 Strongly Tenant-Friendly
• State California: 18 Strongly Tenant-Friendly · D+13
• County: — inherits STATE
• City: — inherits STATE

AB1482 statewide rent cap (10% + CPI). Cities (SF/LA/Berkeley) layer stricter rules. Just-cause statewide.

Methodology + full state rankings →

ZIP-level market 92661

• Home prices YoY: 4.5%
• Rents YoY: 13.6%
• Active inventory: 52
• Price-to-rent: 7.8×

Monthly cashflow live

• Estimated rent: $10,479 medium
• Mortgage (P&I): −$5,113
• Tax est. 1.5%: −$1,219 /mo · $14,625/yr
• Insurance: −$406
• HOA: −$0
• Vacancy / Maint / Mgmt: −$2,201
• Net cashflow: $1,540

Break-even live

Break-even rent $8,529

Max offer price $975,000

Occupancy floor 80%

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $243,750
• Closing costs: $29,250
• Reserves months: —
• Total cash needed: —

Rent comps 29 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
305 Montero St Newport Beach, CA	4.0	3.5	2444	$15,000	$6.14	43d	1	0.11mi
312 Anade Ave Unit B Newport Beach, CA	4.0	2.0	2072	$10,000	$4.83	43d	1	0.12mi
780 Via Lido Soud Newport Beach, CA	5.0	3.0	3366	$29,000	$8.62	43d	1	0.51mi
124 Garnet Ave Newport Beach, CA	4.0	2.0	2219	$13,500	$6.08	43d	1	0.54mi
1229 W Balboa Blvd Newport Beach, CA	4.0	4.5	2127	$7,500	$3.53	43d	1	0.60mi
2732 Bayshore Dr Newport Beach, CA	4.0	3.5	3115	$39,000	$12.52	43d	1	0.67mi
312 Ruby Ave Newport Beach, CA	4.0	2.5	2353	$22,850	$9.71	43d	1	0.75mi
1214 E Balboa Blvd Newport Beach, CA	4.0	3.5	2672	$22,000	$8.23	43d	1	0.82mi
1411 E Bay Ave Newport Beach, CA	4.0	4.0	2548	$27,500	$10.79	43d	1	0.97mi
117 Marine Ave Newport Beach, CA	5.0	5.0	2279	$15,000	$6.58	43d	1	0.98mi
234 Via Graziana Newport Beach, CA	4.0	3.5	2853	$25,000	$8.76	15d	1	0.99mi
1509 E Bay Ave Newport Beach, CA	4.0	4.5	2582	$45,000	$17.43	43d	1	1.02mi
125 Grand Canal Newport Beach, CA	5.0	4.0	2520	$30,000	$11.90	43d	1	1.03mi
200 Grand Canal Newport Beach, CA	4.0	3.0	2014	$12,000	$5.96	24d	1	1.07mi
200 Grand Canal Newport Beach, CA	4.0	3.0	2014	$11,950	$5.93	15d	1	1.07mi
112 Abalone Ave Newport Beach, CA	5.0	4.0	2893	$12,800	$4.42	43d	1	1.10mi
1576 E Ocean Blvd Newport Beach, CA	4.0	3.0	2321	$16,500	$7.11	43d	1	1.13mi
507 J St Newport Beach, CA	4.0	3.0	1800	$30,000	$16.67	24d	1	1.15mi
225 E Bay Front Newport Beach, CA	4.0	4.5	2512	$40,900	$16.28	43d	1	1.17mi
213 Via Cordova Newport Beach, CA	4.0	3.5	2980	$29,995	$10.07	43d	1	1.18mi
503 L St Newport Beach, CA	4.0	4.5	3148	$19,500	$6.19	43d	1	1.24mi
2025 E Balboa Blvd Newport Beach, CA	4.0	4.0	3000	$14,000	$4.67	43d	1	1.31mi
2037 E Ocean Blvd Newport Beach, CA	4.0	4.0	2943	$30,000	$10.19	43d	1	1.35mi
2035 Miramar Dr Newport Beach, CA	4.0	3.0	2028	$21,000	$10.36	43d	1	1.38mi
2105 E Balboa Blvd Newport Beach, CA	4.0	4.5	2985	$28,500	$9.55	43d	1	1.38mi
2105 E Balboa Blvd Newport Beach, CA	4.0	4.5	2985	$28,500	$9.55	3d	1	1.38mi
2600 Newport Blvd #310 Newport Beach, CA	4.0	2.0	1800	$12,800	$7.11	43d	1	1.38mi
2137 Channel Rd Newport Beach, CA	4.0	2.5	2632	$13,750	$5.22	24d	1	1.43mi
2137 Channel Rd Newport Beach, CA	4.0	2.5	2598	$14,000	$5.39	3d	1	1.43mi

Listing history 18 events

1. 2026-06-18
   days on market $975,000 Active 631 DOM
2. 2026-06-17
   days on market $975,000 Active 630 DOM
3. 2026-06-16
   days on market $975,000 Active 629 DOM
4. 2026-06-15
   days on market $975,000 Active 628 DOM
5. 2026-06-13
   days on market $975,000 Active 626 DOM
6. 2026-06-13
   days on market $975,000 Active 625 DOM
7. 2026-06-09
   days on market $975,000 Active 622 DOM
8. 2026-06-08
   days on market $975,000 Active 621 DOM
9. 2026-06-07
   days on market $975,000 Active 620 DOM
10. 2026-06-04
    days on market $975,000 Active 617 DOM
11. 2026-06-03
    days on market $975,000 Active 616 DOM
12. 2026-06-02
    days on market $975,000 Active 615 DOM
13. 2026-06-01
    days on market $975,000 Active 614 DOM
14. 2026-05-31
    days on market $975,000 Active 613 DOM
15. 2026-01-28
    price $975,000 830-char remark

    Show marketing remark (830 chars)

    New Co-Ownership Opportunity: New co-ownership opportunity: Own one-eighth of this professionally managed, turnkey home. Just steps from the sand, this Balboa Peninsula home offers spectacular views of the Pacific and Catalina. Enter through the Dutch front door to an open plan living area featuring a fireplace, an inviting dining area and glass doors to the oceanfront patio. The adjoining kitchen has a peninsula with a breakfast bar, granite countertops, a built-in fridge and loads of storage space. The spacious primary suite has a balcony perfect for catching the sun setting over the water, plus a fireplace and an en suite bathroom with dual sinks and a tiled shower. Down the hall are four guest bedrooms, and the home is topped by a bonus room and sun deck. The home comes fully furnished and professionally decorated.

16. 2025-02-04
    price $1,140,000 830-char remark

    Show marketing remark (830 chars)

    New Co-Ownership Opportunity: New co-ownership opportunity: Own one-eighth of this professionally managed, turnkey home. Just steps from the sand, this Balboa Peninsula home offers spectacular views of the Pacific and Catalina. Enter through the Dutch front door to an open plan living area featuring a fireplace, an inviting dining area and glass doors to the oceanfront patio. The adjoining kitchen has a peninsula with a breakfast bar, granite countertops, a built-in fridge and loads of storage space. The spacious primary suite has a balcony perfect for catching the sun setting over the water, plus a fireplace and an en suite bathroom with dual sinks and a tiled shower. Down the hall are four guest bedrooms, and the home is topped by a bonus room and sun deck. The home comes fully furnished and professionally decorated.

17. 2024-12-17
    price $1,170,000 830-char remark

    Show marketing remark (830 chars)

    New Co-Ownership Opportunity: New co-ownership opportunity: Own one-eighth of this professionally managed, turnkey home. Just steps from the sand, this Balboa Peninsula home offers spectacular views of the Pacific and Catalina. Enter through the Dutch front door to an open plan living area featuring a fireplace, an inviting dining area and glass doors to the oceanfront patio. The adjoining kitchen has a peninsula with a breakfast bar, granite countertops, a built-in fridge and loads of storage space. The spacious primary suite has a balcony perfect for catching the sun setting over the water, plus a fireplace and an en suite bathroom with dual sinks and a tiled shower. Down the hall are four guest bedrooms, and the home is topped by a bonus room and sun deck. The home comes fully furnished and professionally decorated.

18. 2024-09-25
    listed $1,199,000 Active 830-char remark

    Show marketing remark (830 chars)

    New Co-Ownership Opportunity: New co-ownership opportunity: Own one-eighth of this professionally managed, turnkey home. Just steps from the sand, this Balboa Peninsula home offers spectacular views of the Pacific and Catalina. Enter through the Dutch front door to an open plan living area featuring a fireplace, an inviting dining area and glass doors to the oceanfront patio. The adjoining kitchen has a peninsula with a breakfast bar, granite countertops, a built-in fridge and loads of storage space. The spacious primary suite has a balcony perfect for catching the sun setting over the water, plus a fireplace and an en suite bathroom with dual sinks and a tiled shower. Down the hall are four guest bedrooms, and the home is topped by a bonus room and sun deck. The home comes fully furnished and professionally decorated.

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (shaded) · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 5/10 Major 7 d/yr ≥82°F today · 23 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 4/10 Moderate 6 unhealthy d/yr today · 6 by 30 yrs out

Taxation est. · year 1

• Rental income: $125,747
• − Mortgage interest: −$54,615
• − Property taxes: −$14,625
• − Insurance: −$4,875
• − Repairs & maintenance: −$10,060
• − Management: −$10,060
• − Depreciation: −$28,364
• Taxable income: $3,149
• Est. tax owed @ 24.0%: −$756
• After-tax cash flow: $17,728/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Condition & rehab AI · 12 photos

Good 80/100 None rehab

This co-ownership home in Newport Beach offers a turnkey living experience with stunning ocean views and modern amenities.

Value-add opportunities

• Both oceanfront patio furniture — enhances curb appeal and provides outdoor seating
• Both smart home integration — improves convenience and energy efficiency
• Both landscaping — enhances curb appeal and provides privacy

Renovation cost estimate screening

Value-add ROI direction

• Both oceanfront patio furniture — enhances curb appeal and provides outdoor seating ↑
• Both smart home integration — improves convenience and energy efficiency ↑
• Both landscaping — enhances curb appeal and provides privacy ↑

ⓘ Cost ranges are severity-bucket heuristics (US national rule-of-thumb). Get contractor quotes + a written scope before underwriting a rehab budget.

Schools (NCES district)

• District: Newport-Mesa Unified
• NCES district ID: 0627240
• Math proficiency: 46% ▼ -6.00%
• Reading proficiency: 58% ▼ -5.00%
• Median HH income: $83,922
• Composite: 47.64/100
• National rank: #2248
• State rank: #106 of 517 in CA

Livability — Newport Beach

• Score: 76/100
• State rank: #101
• US rank: #3645

Category grades

Amenities A+ Commute A Cost of living F Crime C+ Employment A+ Housing C+ Health & safety C- User ratings C+

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Newport Beach, CA
• County: Orange County · 3,096,323 people
• City population: 83,845
• Metro: Los Angeles-Long Beach-Anaheim, CA
• Population (ZIP): 3,079
• Household income: $209,231
• Rent vs Own: 61.1% rent · 38.9% own
• Severe rent burden: 72.0

Population outlook (Orange County) Hauer SSP2

• Today (2025): 3,477,456 people
• By 2030: 3,613,117 · +3.9%
• By 2040: 3,835,945 · +10.3%
• By 2050: 3,968,736 · +14.1%
• By 2075: 4,097,053 · +17.8%
• By 2100: 3,903,633 · +12.3%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (72%)
• Race & ethnicity: White 72% Two or more races 22% Hispanic / Latino 10% Asian 2%
• Hispanic origin (detail): Mexican 9% Puerto Rican 2%
• Common ancestry: Italian 8% Danish 5% Slovak 4%
• Foreign-born: 8% · Canada
• Languages at home: 88% English-only · Spanish 9% German/W. Germanic 2% Other Asian/Pacific 1%

Political lean MEDSL · Orange

• 2024 margin: Toss-up / Even · D 49.7% · R 47.1% · Other 3.2%
• 2008→2024 swing: +5.2pp toward D · 2008: -2.6pp · 2024: 2.6pp
• All cycles: 2024: D+2.6 2020: D+9.0 2016: D+7.7 2012: R+8.3 2008: R+2.6

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 18.17%
• Current HPI: 425.2623
• Rent YoY: ▲ 13.56%
• Metro: Los Angeles-Long Beach-Anaheim, CA
• State GDP YoY: ▲ 3.21%
• F500 in state: 116

Industry mix (Fortune 500 HQ in CA)

Industry	F500 HQs	Revenue
▸Technology	27	$1,492B
▸Financial Services	3	$174B
▸Retail	3	$44B
▸Insurance	3	$26B
▸Media / Entertainment	2	$115B
▸Pharmaceuticals / Biotech	2	$62B

Price history

-18.7% since first listed

4 events — show timeline

• 2026-01-28 Price Changed $975,000 TheMLS
• 2025-02-04 Price Changed $1,140,000 TheMLS
• 2024-12-17 Price Changed $1,170,000 TheMLS
• 2024-09-25 Listed $1,199,000 TheMLS